Refinance Car After Bankruptcy

To refinance a car after bankruptcy can be more difficult, but you still may be able to benefit from an auto loan refinance.

If you have a discharged bankruptcy, tax lien, or just plain bad credit, you can still get approved. You may be
able to get refinanced through what is called a "high risk" underwriter. Although you likely won't enjoy quite the
same benefits as someone with great credit and no bankruptcies, you may be able to lower your monthly payments.

If you obtained your current auto loan after going through a bankruptcy, then it is obvious that you can get
approved for car financing. Assuming you have not had any bad credit activity, late auto payment, or decrease in pay since you
acquired your current loan, you are likely in better credit standing now then you were before. This is simply
because more time has passed and you've had some time to pay bills on time and reestablish a bit of your credit
score.

Benefits of Auto Refinancing after Bk

By the simple fact that time has passed and you have been on track with your bills after your bk, you may qualify for a lower
interest rate. If your goal is a lower interest rate, it is wise to pay down your credit card balances and any
other revolving accounts as much as you can before applying for a refinance loan. It can also help if you have
been at a steady job for at least six months, and have lived in the same place for at least six months prior to
applying. Lenders generally don't like people who change jobs or homes often, and your interest rate could reflect
it.

If your goal is lower payments, there is help for you also. What you must understand about refinancing for the
purpose of lower payments is that, unless the payments decrease due to a lower interest rate, you are likely going
to have to stretch our your payments over a longer period of time.

"My monthly payment went down by almost a hundred dollars per month, and applying was so easy!"